1 Unprofitable Stock to Consider Right Now and 2 We Turn Down

Barchart·05/22/2026 04:38:22

Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.

Finding the right unprofitable companies is difficult, which is why we started StockStory - to help you navigate the market. Keeping that in mind, here is one unprofitable company that could turn today’s losses into long-term gains and two that could struggle to survive.

Two Stocks to Sell:

Impinj (PI)

Trailing 12-Month GAAP Operating Margin: -1.8%

Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.

Why Do We Think Twice About PI?

1. Projected sales growth of 9.3% for the next 12 months suggests sluggish demand
2. Suboptimal cost structure is highlighted by its history of operating margin losses
3. Push for growth has led to negative returns on capital, signaling value destruction

Impinj’s stock price of $137.37 implies a valuation ratio of 64.7x forward P/E. If you’re considering PI for your portfolio, see our FREE research report to learn more.

Myriad Genetics (MYGN)

Trailing 12-Month GAAP Operating Margin: -46.9%

Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.

Why Is MYGN Risky?

1. Annual revenue growth of 3.5% over the last two years was below our standards for the healthcare sector
2. Negative returns on capital show management lost money while trying to expand the business, and its shrinking returns suggest its past profit sources are losing steam
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Myriad Genetics is trading at $3.91 per share, or 30.3x forward P/E. Read our free research report to see why you should think twice about including MYGN in your portfolio.

One Stock to Watch:

Gevo (GEVO)

Trailing 12-Month GAAP Operating Margin: -2.9%

Operating one of the largest dairy-based renewable natural gas facilities in the United States, Gevo (NASDAQ:GEVO) produces sustainable aviation fuel and other renewable hydrocarbon fuels from plant-based feedstocks like corn.

Why Could GEVO Be a Winner?

1. Annual revenue growth of 19% over the past ten years was outstanding, reflecting market share gains this cycle
2. EBITDA profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

At $1.68 per share, Gevo trades at 2.2x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

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